March 27, 2024
Bitcoin's Rally and Milei's Stance Impact Crypto Market
Bitcoin News

Bitcoin Soars Past $37,000 Following Pro-Bitcoin Leader’s Victory in Argentina’s Election

Bitcoin surged above $37,000 on Monday following the victory of Javier Milei, a proponent of Bitcoin, in Argentina’s presidential election. The broader crypto market saw a nearly 2% increase over the past day.

Milei, an anarcho-capitalist, has been vocal in his support for Bitcoin, labeling it as the return of money to its original creator, the private sector. However, he hasn’t proposed making the world’s largest cryptocurrency a legal tender in the country.

Meanwhile, the AI token sector experienced notable gains, with an over 8% increase attributed to unrelated developments in emerging AI startups. Bittensor’s TAO rose by 4.2%, continuing its 77% rally from the previous week. Other tokens like Ocean Protocol’s OCEAN, Fetch AI’s FET, and SingularityNet’s AGIX surged up to 16% within 24 hours, outpacing major cryptocurrencies. Near Protocol’s NEAR surged by 20%, while staking platform Lido’s LDO saw an 11% increase.

The upcoming week holds potential for significant activity in the crypto sphere due to various events and announcements that might impact market movements, as noted by some traders.

Simon Peters, an analyst at eToro Markets, highlighted the U.S. Federal Reserve’s release of its latest meeting notes on the following day, a factor known for its influence on markets. Peters emphasized that these minutes provide deeper insights into the central bank’s thinking, particularly with investors observing signs indicating a possible peak in rates due to slowing inflation.

Additionally, Peters mentioned Nvidia’s upcoming financial report, noting its symbolic role in the AI revolution as a significant factor that could affect crypto assets.

Concerns were raised by Peters regarding low liquidity towards the week’s end as U.S. financial markets close for Thanksgiving, followed by Black Friday initiating the holiday shopping season. Thin trading volumes during this period could potentially lead to increased volatility in markets.

Alex Kuptsikevich, an analyst at FxPro, stated that while traders anticipate rate cuts from the Federal Reserve in the coming months, such a move might only follow a substantial downturn in financial markets. Kuptsikevich highlighted the Fed’s historical trend of initiating rate cuts after a notable market correction, driven by a weakened appetite for risk.

Kuptsikevich cautioned that if broader markets were to decline, bitcoin might dip below $30,000 before sparking another bull cycle.

Image by freepik

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